News and Releases
March 21, 2007
Virtú Investments Acquires the Alexan Cityview Apartments
Austin, TX – Virtú Investments, LLC, a San Francisco based real estate investment management firm, purchased the Alexan Cityview Apartments in Austin, TX in February of 2007. The 308-unit, Class A property is strategically located in the rapidly developing Southeast Austin submarket, just three miles from downtown Austin and the city’s Central Business District. Virtú was able to purchase the property at a price which, after a modest cosmetic renovation, will be roughly 90% of current replacement cost.
The Alexan Cityview investment represents an excellent opportunity for Virtú to acquire a strong, well located Class A asset at a reasonable price, relative to rising construction costs. While economic expansion in the greater Austin area has increased the demand for housing, substantial increases in construction and land costs have constrained supply. Virtú believes that this disequilibrium in housing supply and demand should fuel explosive rent growth well into the future.
Virtú will execute a substantial renovation to the exterior and interior of the property, designed to further its Class A status. Exterior upgrades include fencing, gating, parking and landscaping improvements, while interior upgrades include new carpeting and appliances, as well as significant renovations to the leasing office and fitness center. Virtú anticipates the renovation will enhance curb appeal, improve amenities and raise the overall profile of the property.
Virtú will be obtaining new long term, 10-year conduit financing at a fixed rate of 5.5%. This debt will be interest only for the first five years, and will amortize on a 30-year schedule thereafter. Virtú likes the fixed rate loan due to the historically low rate, which should help preserve a strong exit CAP rate.
The Alexan Cityview Apartments purchase was sourced by Texas based Regional Acquisitions Director Marc Olivieri. For more information concerning other multi-family acquisitions throughout the Midwestern United States, contact Marc Olivieri (480-773-1619). For information concerning acquisition possibilities in the Western U.S., contact Stuart Bone (415-999-2088). For information concerning commercial acquisitions throughout the U.S., contact Will Fleming at Virtú Commercial (415-398-4202).
Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over fifty properties throughout the country. The company’s current portfolio is valued at approximately $450 million and Virtú has approximately $120 million of private equity under management. Virtú performs its own property management and has primary offices in San Francisco and Carlsbad, CA, and satellite offices in Seattle, WA and Scottsdale, AZ.